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A Look at Retractable Awnings
Awnings are popular for many reasons. They not only add style and elegance to both residential and commercial buildings, but can also greatly increase energy efficiency. The combination of these factors has made awnings one of the favorite...
Flood Insurance
Flood insurance is not included in basic home owner's insurance!
Interestingly enough, one of the worst natural disasters that could possibly affect your home is not included under most normal home owner's insurance policies. As a result, flood...
How To Save Your Home From Foreclosure
The Great American Dream of homeownership is what many in our country diligently strive for. Homeownership brings many benefits, as well as responsibilities. Entrance into the status of homeowner may come with little or no cash investment for a...
The Single Biggest Mistake Real Estate Investors Make
Before you even think about becoming the next real estate tycoon, you’ve got to be disciplined to learn the basics. What you’re about to read may come as a surprise to you, but there is a single mistake among real estate investors, especially new...
Was That House A Good Investment? The Answer May Not Be So Obvious
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Down Payments ? Get Creative
One of the biggest hurdles to buying a home is the down payment. Saving up a chunk of change can be difficult, so getting creative is a key.
Down Payments
The amount of your down payment is dependent upon many potential issues, but two come to the forefront. Each of these can reduce or increase the amount of cash you have to come up with for the home of your dreams.
1. Credit Score ? Generally, the better your score, the lower the down payment.
2. Price ? The selling price of the home is key because the down payment is expressed as a percentage of the home price or appraisal amount.
Either way, the down payment can amount to a serious chunk of change. For many first time buyers, this is a huge hurdle to overcome. They skimp and save everything they can, but saving up many thousands of dollars can take time and be frustrating. Fortunately, many first time buyers have already been saving up for their down payments, but don?t realize it.
Getting Creative
The Bank of You ? The federal government looks very favorably on home ownership. This means it makes every effort to promote the real estate market through incentives and tax breaks. Once such incentive is a unique little twist built into the laws controlling 401k savings plans. The tweak in these laws allows you
to?well, borrow from the bank of you.
With most 401k plans, you have the right to borrow up to 50 percent of the vested amount of your account. If you?ve managed to save $50,000 over the years in your 401k, you can take a loan from the account for up to $25,000. This, of course, should be used for the down payment on your home. After getting into the home, you can simply pay off the 401k loan over five years or you can take out a home equity loan and repay it with that money.
In essence, you have used your 401k money to play a shell game with the down payment. In the end, this creative down payment funding strategy gets you over the down payment hurdle and into your home.
About the Author: Dan Lewis is with http://www.gwhomeloans.com - San Diego mortgage brokers providing San Diego home loans. Visit http://www.gwhomeloans.com/services.html to learn more about options on San Diego mortgages from a San Diego mortgage broker company.
Source: www.isnare.com
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